- 57% of pending orders in the 100-pip range are to BUY
- 54% of open positions are bullish (+1%)
- Significant resistance located circa 1.3380
- Upcoming events: UK Public Sector Net Borrowing, US Final GDP q/q, US Philly Fed Manufacturing Index, US Unemployment Claims
The US home sales rose more than anticipated in November to reach the highest level in 11 years, indicating that the property market growth started to regain momentum after procrastination for the most of the year.
The National Association of Realtors stated that the country's exciting home sales increased 5.6% to a seasonally adjusted yearly rate of 5.81M units due to lingering recovery of hurricanes-hurt areas. However, the market activity remained constrained by a shortage of available properties, which kept prices elevated.
US Final GDP
Thursday's trading session is to start with the British Public Sector Net Borrowing at 0930GMT. The remaining set of fundamentals comes from the US and is to be released at 1330GMT – the Final GDP for the third quarter of 2017, the Philly Fed Manufacturing Index and weekly Unemployment Claims.
GBP/USD continues to move in triangle
Although yesterday's fluctuations required some adjustments, the main assumption remained unchanged. The cable is continuing to trade in a symmetrical triangle pattern whose upper trend line simultaneously represents the slope of a larger falling wedge formation.
From dominant pattern's perspective, a breakout should happen in southern direction towards support zone located between the 1.3338 and 1.3331 marks. Most probably, traders anticipate final adoption of tax bill . However, the pair might prematurely leave the junior pattern if the pressure of 55-, 100- and 200-hour SMAs together with the monthly PP will match with release of better than expected information on the American Final GDP.
On the other hand, it should be noted that 56% of pending orders in 100-pip range are set to buy.
Hourly chart
Despite the strong upside momentum that was apparent on Wednesday morning, the bearish sentiment eventually prevailed and thus pushed the rate towards the monthly PP. It is likely that the pair continues to edge lower in this session, as the Pound is facing a massive resistance cluster circa 1.3380 apparent on the hourly chart.
Meanwhile, the nearest support is set by the distant weekly S1 and the 55-day SMA at 1.3270. Thus, there are no southern barriers that could limit a possible fall in this session.
Daily chart
The bullish market sentiment has increased by one percentage point on Thursday, as 54% of open positions are long. In addition, 51% of pending orders are to buy the Sterling (-2%).
OANDA traders remain bearish, as 52% of open positions are still short (-3%). Saxo Bank clients share the same sentiment with 54% short positions (-3%).
Spreads (avg, pip) / Trading volume / Volatility